"Drinking fancy wine is so last decade. In today's speculative markets, produce from the world's great chateaux is leaving other "hard" assets in the dust. London's Liv-Ex fine wine exchange's index of top 50 wines rose 57% for 2010. That easily outperformed gold's 29.8% rise, converted to U.K. pounds to be on an equivalent basis with Liv-Ex's index, or oil's 15.1% increase, also converted to pounds. As for equities, the FTSE 100, for instance, was up just 9%.
Liv-Ex attributes the price surge to heavy demand from—you guessed it—China, as well as some other Asian countries. Given extreme supply constraints and a surge in the world's megarich, the fine wine 50 index is up 269% over five years.
If the market turns, investors mightn't find the asset as liquid as they would like. But, for now, the lesson seems to be that those wanting to make some greenbacks should target reds or whites."
Source: OVERHEARD on the Wall Street Journal Online, Thursday January 6
Showing posts with label Market Notes: CHINA and HONG KONG. Show all posts
Showing posts with label Market Notes: CHINA and HONG KONG. Show all posts
FRESH REPORT FROM HONG KONG… Guest Blogpost from Amy Hanson
"In China and Hong Kong, general consumer knowledge of wine, especially Californian, has much room to grow. While the days of mixing wine with soft drinks to combat a perceived bitter taste are all but gone, the average consumer still gravitates toward European wines because of prestige and reputation. "
"I’ve been to Hong Kong many times over the last 15 years, and it was interesting to view it this time through the lens of the wine market. Hong Kong is, as anyone who has visited knows, a very international city: while I was there, I attended a tasting of Italian wines at The China Club hosted by the Berkeley Alumni Association!
The Hong Kong government has made a goal to be Asia’s wine hub and made the market duty-free in 2008; a U.S. Commercial Service officer in Hong Kong told me that U.S. wine exports to Hong Kong increased by over 250% in the last year.
I met with some very impressive wine experts during my trip. Iin Hong Kong there is a small but growing population of more adventurous and educated wine drinkers who seek out boutique, high-value, quality wines – a great sign for companies like ours!"
ABOUT AMY HANSON, Guest Blogger
Amy just returned from a trip to Hong Kong in her new role as VP of Marketing for California Grapes International, a value-added distributor of boutique California wines in Hong Kong. She has been a high-tech consultant for much of her time since graduating from Harvard in 1992. More Reports to Come in the Future!
You can read more about Amy at Barbara Keck's new website, Harvard-in-Wine.blogspot
.
"I’ve been to Hong Kong many times over the last 15 years, and it was interesting to view it this time through the lens of the wine market. Hong Kong is, as anyone who has visited knows, a very international city: while I was there, I attended a tasting of Italian wines at The China Club hosted by the Berkeley Alumni Association!
The Hong Kong government has made a goal to be Asia’s wine hub and made the market duty-free in 2008; a U.S. Commercial Service officer in Hong Kong told me that U.S. wine exports to Hong Kong increased by over 250% in the last year.
I met with some very impressive wine experts during my trip. Iin Hong Kong there is a small but growing population of more adventurous and educated wine drinkers who seek out boutique, high-value, quality wines – a great sign for companies like ours!"
ABOUT AMY HANSON, Guest Blogger
Amy just returned from a trip to Hong Kong in her new role as VP of Marketing for California Grapes International, a value-added distributor of boutique California wines in Hong Kong. She has been a high-tech consultant for much of her time since graduating from Harvard in 1992. More Reports to Come in the Future!
You can read more about Amy at Barbara Keck's new website, Harvard-in-Wine.blogspot
.
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